iShares Expanded Tech Sector ETF (ARCA: IGM)

Dernières nouvelles pour iShares Expanded Tech Sector ETF (ARCA:IGM)

iShares Expanded Tech Sector ETF

iShares North American Tech ETF

Technology

Communication Services

Industrials

The Fund seeks to track the investment results of the S&P North American Expanded Technology Sector Index; the Underlying Index, which measures the performance of U.S.-traded stocks from the technology sector and select technology-related companies from the communication services and consumer discretionary sectors in the U.S. and Canada, as determined by S&P Dow Jones Indices LLC; the Index Provider or SPDJI.

Apple Inc

Microsoft Corp

Meta Platforms, Inc.

NVIDIA Corporation

Alphabet, Inc. - Cl. A

Broadcom (equity)

Alphabet, Inc. - CL C

Netflix Inc Common Stock Usd 0.001

Salesforce.com Inc

Adobe Systems

Oracle Corp.

Cisco Systems Inc

Palantir Technologies Inc.

BlackRock is recalibrating its investment strategy, moving away from traditional macro anchors towards &#8220;mega forces&#8221; like artificial intelligence, which they believe will be &#8220;durable drivers of returns&#8221; in both the near and long term.
What Happened: This shift is detailed in their latest commentary, which emphasizes a more tactical approach to investing in a world where long-term macro stability is diminishing.
The firm notes that while &#8220;long-term macro anchors markets have relied on for decades, like stable inflation and fiscal discipline, have weakened,&#8221; this doesn&#8217;t necessitate a reduction in risk-taking.
Instead, mega forces or AI-related investments offer a &#8220;new anchor for returns.&#8221;
<a href="https://www.benzinga.com/markets/equities/25/06/46068345/blackrock-bets-big-on-defense-companies-amid-escalating-geopolitical-tensions-palantir-lockheed-martin-northrop-grumman-among-stocks-in-focus">BlackRock</a> also highlights the role of &#8220;immutable economic laws&#8221; in limiting the pace of global change, such as the inability to rewire supply chains overnight and the reliance of U.S. debt sustainability on foreign funding.
This perspective keeps BlackRock &#8220;risk on and overweight U.S. equities.&#8221;
Despite recent U.S. stock gains driven by the AI theme and a backdrop of persistent sticky inflation, the firm sees &#8220;scope for overall corporate earnings to stay solid even if U.S. growth is dented by tariff-induced disruptions and corporate caution.&#8221;
See Also: <a href="https://www.benzinga.com/markets/hedge-funds/25/07/46290114/bill-ackman-bets-over-60-of-pershing-squares-portfolio-in-these-4-stocks-uber-hhh-and-more">Bill Ackman Bets Over 60% Of Pershing Square&#8217;s Portfolio In These 4 Stocks: UBER, HHH And More</a>
Why It Matters: BlackRock anticipates that sticky inflation will prevent the Federal Reserve from significant rate cuts, and high fiscal deficits in the U.S. may prompt investors to seek a greater term premium on long-term debt.
The firm stresses that in this volatile environment, &#8220;set-and-forget portfolios no longer serve investors well,&#8221; advocating for active management across asset classes.
&#8220;Greater dispersion in market and security returns means more opportunity to capture alpha,&#8221; they conclude, reinforcing their belief that mega forces or AI investments will be pivotal in driving future returns.
Here are a few AI-linked exchange-traded funds that investors could consider amid ongoing optimism about the sector.
<figure class="wp-block-table is-style-stripes"> 
<table class="has-fixed-layout">
<tbody>
<tr>
<td>ETF Name</td>
<td>YTD Performance</td>
<td>One Year Performance</td>
</tr>
<tr>
<td>iShares US Technology ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IYW#NYSE">IYW</a>)</td>
<td>9.19%</td>
<td>11.00%</td>
</tr>
<tr>
<td>Fidelity MSCI Information Technology Index ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FTEC#NYSE">FTEC</a>)</td>
<td>7.44%</td>
<td>11.23%</td>
</tr>
<tr>
<td>First Trust Dow Jones Internet Index Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FDN#NYSE">FDN</a>)</td>
<td>10.49%</td>
<td>28.91%</td>
</tr>
<tr>
<td>iShares Expanded Tech Sector ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IGM#NYSE">IGM</a>)</td>
<td>10.06%</td>
<td>15.00%</td>
</tr>
<tr>
<td>iShares Global Tech ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IXN#NYSE">IXN</a>)</td>
<td>9.53%</td>
<td>6.96%</td>
</tr>
<tr>
<td>Defiance Quantum ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QTUM#NASDAQ">QTUM</a>)</td>
<td>12.05%</td>
<td>42.81%</td>
</tr>
<tr>
<td>Roundhill Magnificent Seven ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/MAGS#BATS">MAGS</a>)</td>
<td>1.66%</td>
<td>12.74%</td>
</tr>
</tbody>
</table>
</figure>
The SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) and Invesco QQQ Trust ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>), which track the S&amp;P 500 index and Nasdaq 100 index, respectively, were higher in premarket on Tuesday. The SPY was up 0.11% at $621.36, while the QQQ advanced 0.26% to $553.47, according to <a href="https://pro.benzinga.com/dashboard">Benzinga Pro</a> data.
Read Next:
<ul class="wp-block-list">
<li><a href="https://www.benzinga.com/markets/equities/25/07/46269226/stocks-just-hit-rare-golden-cross-for-1st-time-since-2023-heres-what-it-means-for-investors" target="_blank" rel="noreferrer noopener">Stocks Just Hit Rare Golden Cross For 1st Time Since 2023 — Here's What It Means For Investors</a></li>
</ul>
Disclaimer:&nbsp;This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. 
Image via Shutterstock

News

First Trust Dow Jones Internet Index Fund

FTEC

iShares Trust S&P Global Information Technology Sector Index Fund

iShares Dow Jones US Technology Sector Index Fund

MAGS

QTUM

BlackRock Shifts Gears, Declares AI The New 'Anchor For Returns' As Inflation Stays Sticky

Experts have been debating the artificial intelligence-driven impact on employment with contradicting views. While market veteran like Jim Cramer thinks that &#8220;AI is still not trusted,&#8221; others see trouble brewing in the labor market due to the automation of several human-led jobs.
What Happened: Citing the labor differential and unemployment rate data, Ark Invest&#8217;s Cathie Wood said in her &#8220;<a href="https://www.ark-invest.com/videos/market-commentary/july-2025-in-the-know-cathie-wood">In The Know</a>&#8221; series, &#8220;Labor differential says that it&#8217;s getting harder to find jobs,&#8221; while adding that &#8220;rising unemployment claims suggest that people who are out of work are finding it difficult to get a job.&#8221;
While she blames immigration for this, Wood also states that &#8220;we do know that AI is hurting entry-level jobs.&#8221;
Highlighting a personal example from the ARK 2025 Vibe Coding Hackathon, she said that her firm used AI to address 13 pain points within the organization.
&#8220;Because of (AI&#8217;s) natural language programming, SaaS is going to run into some trouble here, now that we can do a lot ourselves and customize to our own organization&#8217;s needs,&#8221; she explains.
On the other hand, CNBC&#8217;s Mad Money host Cramer took to X and underscored that traditional white collar firms haven&#8217;t seen AI-related job cuts.
&#8220;They are still hiring, still paying a lot. AI is still not trusted at the highest rungs of major companies,&#8221; he said.
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<blockquote class="twitter-tweet" data-width="500" data-dnt="true">CEOs have been saying that AI will wipe out jobs at their companies. But it hasn&#39;t happened at most traditional white collar firms. They are still hiring, still paying a lot. AI is still not trusted at the highest rungs of major companies
&mdash; Jim Cramer (@jimcramer) <a href="https://twitter.com/jimcramer/status/1940680480380408248?ref_src=twsrc%5Etfw">July 3, 2025</a></blockquote>
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Meanwhile, taking a strong stand on this, economist Craig Shapiro warned that <a href="https://www.benzinga.com/markets/economic-data/25/06/46093421/ai-will-disrupt-25-of-us-jobs-by-2030-and-the-fed-cant-save-them-economist-warns">AI could wipe 25% of jobs in the U.S.</a> by 2030, and the Federal Reserve&#8217;s traditional tool of interest rate cuts is ill-equipped to address the looming labor crisis.
See Also: <a href="https://www.benzinga.com/markets/equities/25/07/46188237/bill-gates-is-betting-two-thirds-of-his-foundations-portfolio-in-these-3-stocks">Bill Gates Is Betting Two-Thirds Of His Foundation&#8217;s Portfolio In These 3 Stocks</a>
Why It Matters: Shapiro cites a Goldman Sachs study and explains that tech giants like Amazon.com Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>) and Microsoft Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>) are investing billions in AI, which will potentially automate 25% of the U.S. labor market by 2030.
Furthermore, he says, "AI-driven labor displacement, accelerating in 2025, poses a structural crisis that Federal Reserve rate cuts cannot fix.&#8221;
Shapiro also outlines Federal Reserve Vice Chair Michael Barr&#8216;s 2025 warning: AI could increase the natural unemployment rate due to skill mismatches. A <a href="https://hbr.org/2015/08/research-technology-is-only-making-social-skills-more-important">Harvard study</a> supported this, estimating 47% of U.S. jobs are at risk. 
Price Action: Here are a few AI-linked exchange-traded funds that investors can consider amid the booming artificial intelligence demand.
<figure class="wp-block-table is-style-stripes"> 
<table class="has-fixed-layout">
<tbody>
<tr>
<td>ETF Name</td>
<td>YTD Performance</td>
<td>One-Year Performance</td>
</tr>
<tr>
<td>iShares US Technology ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IYW#NYSE">IYW</a>)</td>
<td>10.00%</td>
<td>12.38%</td>
</tr>
<tr>
<td>Fidelity MSCI Information Technology Index ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FTEC#NYSE">FTEC</a>)</td>
<td>8.40%</td>
<td>13.19%</td>
</tr>
<tr>
<td>First Trust Dow Jones Internet Index Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FDN#NYSE">FDN</a>)</td>
<td>10.40%</td>
<td>27.93%</td>
</tr>
<tr>
<td>iShares Expanded Tech Sector ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IGM#NYSE">IGM</a>)</td>
<td>10.94%</td>
<td>16.23%</td>
</tr>
<tr>
<td>iShares Global Tech ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IXN#NYSE">IXN</a>)</td>
<td>10.44%</td>
<td>8.71%</td>
</tr>
<tr>
<td>Defiance Quantum ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QTUM#NASDAQ">QTUM</a>)</td>
<td>13.52%</td>
<td>45.81%</td>
</tr>
</tbody>
</table>
</figure>
Price Action: On the truncated trading day of July 3rd, the SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) and Invesco QQQ Trust ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>), which track the S&amp;P 500 index and Nasdaq 100 index, respectively, scaled fresh records and ended higher. The SPY was up 0.79% at $625.34, while the QQQ advanced 0.98% to $556.22, according to <a href="https://pro.benzinga.com/dashboard">Benzinga Pro</a> data.
Read Next:
<ul class="wp-block-list">
<li><a href="https://www.benzinga.com/markets/equities/25/07/46216283/dan-ives-urges-apple-to-make-a-move-saying-that-perplexity-acquisition-is-a-no-brainer-its-a-matter-of-when-and-not-if">Dan Ives Urges Apple &#8216;To Make A Move,&#8217; Saying That Perplexity Acquisition Is &#8216;A No-Brainer&#8217;: &#8216;It&#8217;s A Matter Of When And Not If&#8217;</a></li>
</ul>
Photo courtesy: Shutterstock

Tech

AMZN

MSFT

Jim Cramer Contradicts AI-Led Job Cuts At White Collar Firms As Cathie Wood Says It's 'Hurting Entry-Level Jobs:' Here's How Experts Debunk AI's Impact On Employment

As artificial intelligence (AI) <a href="https://www.benzinga.com/markets/tech/25/06/46089330/bernie-sanders-slams-job-cuts-says-ai-should-give-workers-more-time-off-instead-of-throwing-you-out-on-the-street">accelerates job displacement,</a> economist Craig Shapiro warns that the Federal Reserve's traditional tool of interest rate cuts is ill-equipped to address the looming labor crisis.
What Happened: In an X post and a detailed Substack essay published today, Shapiro argues that AI's structural impact on employment—particularly in white-collar sectors—renders monetary policy ineffective, urging a shift toward fiscal and regulatory solutions.
&#8220;AI-driven labor displacement, accelerating in 2025, poses a structural crisis that Federal Reserve rate cuts cannot fix,&#8221; he said.
Shapiro's analysis highlights a growing crisis, with tech giants like Amazon.com Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>) and Microsoft Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>) investing billions in AI, potentially automating 25% of the U.S. labor market by 2030, according to Goldman Sachs.
His X post cites Federal Reserve Vice Chair Michael Barr's 2025 warning that AI could raise the natural unemployment rate due to skill mismatches, a view echoed by a <a href="https://hbr.org/2015/08/research-technology-is-only-making-social-skills-more-important">Harvard study</a> estimating 47% of U.S. jobs at risk. 
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"> 
<div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">Hypothesis: Fed interest rate cutting cycle will do very little to save the labor market which has begun to deteriorate more rapidly due to the acceleration of developments from Artificial Intelligence. Why Federal Reserve Policy Tools Can't Alone Solve AI Displacement The…
&mdash; Craig Shapiro (@ces921) <a href="https://twitter.com/ces921/status/1937814880486142284?ref_src=twsrc%5Etfw">June 25, 2025</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></div>
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Rate cuts, designed for cyclical downturns, fail to counter this permanent shift and may even accelerate automation by lowering capital costs, as firms prioritize AI over human labor.
Shapiro also expands on the ripple effects, noting a 62% rise in white-collar workers' job automation fears per a 2025 Pew survey, driving a drop in consumer confidence to 98.2 and a 3.5% decline in luxury spending.
See Also: <a href="http://BlackRock Bets Big On Defense Companies Amid Escalating Geopolitical Tensions: Palantir, Lockheed Martin, Northrop Grumman Among Stocks In Focus">BlackRock Bets Big On Defense Companies Amid Escalating Geopolitical Tensions: Palantir, Lockheed Martin, Northrop Grumman Among Stocks In Focus</a>
Why It Matters: To counter the possible failure of monetary policy, Shapiro advocates for bold measures like universal basic income pilots, tested in Finland with €560 monthly payments, and federally funded reskilling initiatives.
"Monetary policy alone cannot absorb the labor shock of AI," he writes, calling for AI impact assessments and corporate transition taxes. As the job apocalypse unfolds, Shapiro's insights signal that only structural reforms can balance AI's promise with economic stability.
Price Action: Here are a few AI-linked exchange-traded funds that investors can consider amid the booming artificial intelligence demand.
<figure class="wp-block-table is-style-stripes"> 
<table class="has-fixed-layout">
<tbody>
<tr>
<td>ETF Name</td>
<td>YTD Performance</td>
<td>One Year Performance</td>
</tr>
<tr>
<td>iShares US Technology ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IYW#NYSE">IYW</a>)</td>
<td>5.68%</td>
<td>12.16%</td>
</tr>
<tr>
<td>Fidelity MSCI Information Technology Index ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FTEC#NYSE">FTEC</a>)</td>
<td>3.78%</td>
<td>12.36%</td>
</tr>
<tr>
<td>First Trust Dow Jones Internet Index Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FDN#NYSE">FDN</a>)</td>
<td>7.14%</td>
<td>29.37%</td>
</tr>
<tr>
<td>iShares Expanded Tech Sector ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IGM#NYSE">IGM</a>)</td>
<td>6.83%</td>
<td>16.11%</td>
</tr>
<tr>
<td>iShares Global Tech ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IXN#NYSE">IXN</a>)</td>
<td>6.37%</td>
<td>8.48%</td>
</tr>
<tr>
<td>Defiance Quantum ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QTUM#NASDAQ">QTUM</a>)</td>
<td>9.42%</td>
<td>43.88%</td>
</tr>
</tbody>
</table>
</figure>
The SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) and Invesco QQQ Trust ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>), which track the S&amp;P 500 index and Nasdaq 100 index, respectively, rose in premarket on Wednesday. The SPY was up 0.21% at $608.06, while the QQQ rose 0.38% to $541.83, according to <a href="https://pro.benzinga.com/dashboard">Benzinga Pro</a> data.
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Image Via Shutterstock

AI Will Disrupt 25% Of US Jobs By 2030—And The Fed Can't Save Them, Economist Warns

Brookfield Asset Management (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BAM#NYSE">BAM</a>) announced on Wednesday a <a target="_blank" href="https://www.benzinga.com/pressreleases/25/06/g45766460/brookfield-to-advance-ai-infrastructure-in-sweden-through-sek-95-billion-investment" rel="noreferrer noopener">commitment of up to SEK 95 billion (roughly $10 billion)</a> to build artificial intelligence infrastructure in Sweden, representing one of its largest AI investments in Europe to date.
Brookfield plans to anchor the funding around a new AI-focused data center campus in Strängnäs, a project intended to strengthen Sweden&#8217;s national AI capabilities and digital resilience.
Brookfield has secured rights to about 350,000 square meters of land to more than double the site&#8217;s energy capacity from 300MW to 750MW. The project is expected to generate over 3,000 jobs, including 1,000 permanent positions and 2,000 for the construction phase.
Also Read: <a target="_blank" href="https://www.benzinga.com/markets/equities/25/06/45767936/tech-bull-says-nvda-can-be-a-250-stock-if-trump-takes-a-step-back-from-tariffs" rel="noreferrer noopener">Tech Bull Says NVDA Can Be A $250 Stock If Trump Takes A Step Back From Tariffs</a>
&#8220;This marks another important step for boosting sovereign compute capabilities for both public services and private enterprises in Europe,&#8221; said Sikander Rashid, Head of Europe at Brookfield.
The investment targets critical infrastructure beyond data centers, including energy generation and chip storage, all seen as foundational for deploying AI technologies at scale.
Brookfield has invested more than €100 billion globally in digital infrastructure, renewables, and semiconductors. Earlier this year, the firm pledged €20 billion to France, with half going toward a major AI factory project. The firm has been active in Sweden since 2018, with holdings across telecom, clean energy, logistics, and public assets.
Brookfield Asset Management reported strong <a target="_blank" href="https://www.benzinga.com/pressreleases/25/05/g45216531/brookfield-asset-management-announces-record-first-quarter-results" rel="noreferrer noopener">first-quarter 2025</a> results, with fee-related earnings up 26% year-over-year to $698 million, driven by robust fundraising and real estate inflows. The firm raised $25 billion in Q1, deployed $16 billion across asset classes, and closed $6 billion for its real estate flagship, now at $16 billion.
Related ETFs: Global X Artificial Intelligence &amp; Technology ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AIQ#NASDAQ">AIQ</a>), iShares Expanded Tech Sector ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IGM#NYSE">IGM</a>).
Price Action: BAM shares are trading higher by 0.23% to $56.57 at last check Wednesday.
Read Next: 
<a href="https://www.benzinga.com/markets/equities/25/06/45765484/dow-futures-edge-higher-after-two-days-of-gains-expert-says-trump-tariffs-distorting-pretty-much-everything" target="_blank" rel="noreferrer noopener">Dow Futures Edge Higher After Two Days Of Gains: Expert Says Trump Tariffs&#8217; Distorting Pretty Much Everything&#8217;</a>
Photo by Gorodenkoff via Shutterstock

Brookfield Bets Big On European AI With $10 Billion Investment

Chamath Palihapitiya has weighed in on the implications of Swedish buy now, pay later firm Klarna significantly scaling back its reliance on artificial intelligence for customer service, suggesting it could signal a broader challenge for AI-first startups.
What Happened: Palihapitiya took to social media to express his concerns, stating that the difficulties Klarna is reportedly facing in fully replacing human agents with AI could force many startups to &#8220;pivot to simply use AI for narrow use cases.&#8221;
His comments come as Klarna, a year after boldly claiming its AI chatbot could handle the workload of 700 representatives, announced a strategic shift to ensure customers always have the option to speak with a human agent.
This marks a notable departure from the company&#8217;s previous &#8220;all in&#8221; approach to AI in customer service, which included layoffs and a hiring freeze.
Klarna spokesperson Clare Nordstrom <a href="https://www.customerexperiencedive.com/news/klarna-reinvests-human-talent-customer-service-AI-chatbot/747586/">told</a> CX Dive that the company&#8217;s AI strategy is evolving. &#8220;AI gives us speed. Talent gives us empathy. Together, we can deliver service that's fast when it should be, and empathetic and personal when it needs to be,&#8221; she explained, highlighting a move towards augmenting human agents rather than fully replacing them. &#8211;
Palihapitiya echoed this sentiment in his online post, suggesting that &#8220;replacing determinism or humans with probabilistic code is fraught with edge cases and require new ways of software development and process engineering that aren&#8217;t well solved yet.&#8221;
He further warned that the difficulties in achieving reliable AI-driven products in real-world applications could have &#8220;severe&#8221; implications for a generation of AI-centric &#8220;apps.&#8221; Customer service, he speculated, might be the first area to show these limitations.
Instead of being &#8220;AI companies,&#8221; they might be forced to adopt AI for specific, limited functions while relying on more deterministic approaches for core operations, he highlighted.
This raises questions, according to Palihapitiya, about the fundamental value proposition of companies that have secured funding at high &#8220;AI valuations&#8221; but may ultimately resemble &#8220;really overpriced SaaS companies.&#8221;
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<blockquote class="twitter-tweet" data-width="500" data-dnt="true">Not nearly enough people are talking about the implications of Klarna rolling back some of their AI bets. Not knowing any of the details, I can guess why: Replacing determinism or humans with probabilistic code is fraught with edge cases and require new ways of software…
&mdash; Chamath Palihapitiya (@chamath) <a href="https://twitter.com/chamath/status/1922096736308490416?ref_src=twsrc%5Etfw">May 13, 2025</a></blockquote>
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See Also: <a href="https://www.benzinga.com/government/regulations/25/05/45367206/sp-500-rallies-over-3-on-us-china-90-day-tariff-truce-but-experts-warn-it-doesnt-guarantee-a-complete-resolution-of-the-trade-war">S&amp;P 500 Rallies Over 3% On US-China 90-Day Tariff Truce, But Experts Warn It &#8216;Doesn&#8217;t Guarantee A Complete Resolution Of The Trade War&#8217;</a>
Why It Matters: Klarna CEO Sebastian Siemiatkowski emphasized the importance of human interaction from a brand and customer perspective in a recent interview <a href="https://www.bloomberg.com/news/articles/2025-05-08/klarna-turns-from-ai-to-real-person-customer-service">with</a> Bloomberg. &#8220;I just think it's so critical that you are clear to your customer that there will be always a human if you want,&#8221; he stated.
The company is now actively recruiting for a new &#8220;Uber-type&#8221; customer service model, offering flexible, remote work with competitive pay to attract skilled individuals.
Price Action: Here&#8217;s how some AI-linked exchange-traded funds have performed.
<figure class="wp-block-table is-style-stripes"> 
<table class="has-fixed-layout">
<tbody>
<tr>
<td>ETF Name</td>
<td>YTD Performance</td>
<td>One Year Performance</td>
</tr>
<tr>
<td>iShares US Technology ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IYW#NYSE">IYW</a>)</td>
<td>-2.69%</td>
<td>15.47%</td>
</tr>
<tr>
<td>Fidelity MSCI Information Technology Index ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FTEC#NYSE">FTEC</a>)</td>
<td>-3.74%</td>
<td>15.41%</td>
</tr>
<tr>
<td>First Trust Dow Jones Internet Index Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FDN#NYSE">FDN</a>)</td>
<td>1.23%</td>
<td>21.80%</td>
</tr>
<tr>
<td>iShares Expanded Tech Sector ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IGM#NYSE">IGM</a>)</td>
<td>-1.77%</td>
<td>17.46%</td>
</tr>
<tr>
<td>iShares Global Tech ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IXN#NYSE">IXN</a>)</td>
<td>-1.40%</td>
<td>12.40%</td>
</tr>
<tr>
<td>Defiance Quantum ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QTUM#NASDAQ">QTUM</a>)</td>
<td>0.74%</td>
<td>38.88%</td>
</tr>
</tbody>
</table>
</figure>
The SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) and Invesco QQQ Trust ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>), which track the S&amp;P 500 index and Nasdaq 100 index, respectively, were lower in premarket on Tuesday. The SPY was down 0.28% to $581.37, while the QQQ declined 0.36% to $506.00, according to <a href="https://pro.benzinga.com/dashboard">Benzinga Pro</a> data.
Read Next:
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Disclaimer:&nbsp;This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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Equities

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Broad U.S. Equity ETFs

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Chamath Palihapitiya Says Swedish Fintech Company Klarna Scaling Back AI Support Is A Red Flag For Industry: Startups Could 'Pivot To Simply Use AI For Narrow Use Cases'

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Earnings Scheduled For May 8, 2025

Billionaire investor Mark Cuban has urged GenZ youth to upscale themselves by learning more about artificial intelligence. As growing AI applications have been disrupting business, here is a list of AI-linked investment opportunities that investors could consider to increase their exposure.
What Happened: During an <a href="https://www.youtube.com/watch?v=vkJfCMycJRk">interaction</a> at South by Southwest or SXSW festival in Austin, Texas, Cuban said that it was pivotal to learn about AI to integrate it into business.
Addressing the entrepreneurship-oriented youth, Cuban said, &#8220;I would spend every waking minute learning about AI,&#8221; when asked about advice for the next generation of business leaders.
He also used his own Instagram and TikTok feed as an example, stating that it consisted of AI hacks because of the rapid technological changes and AI adoption.
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&#8220;It&#8217;s one thing to have a business and how you integrate AI. But if you&#8217;re just getting started, as you learn these things, it&#8217;s so much easier to start,&#8221; he said.
&#8220;Whether you use Perplexity, Anthropic Claude, ChatGPT, Gemini. It doesn&#8217;t matter, right?&#8221; he said rhetorically stating that AI tools can &#8220;spider everything&#8221; from writing emails to doing sales calls.
However he added that most people won&#8217;t leverage the capabilities of AI, &#8220;But those people who put in the time are going to crush it,&#8221; he said.
Why It Matters: The AI race has been intensifying worldwide. The popularity of Chinese AI startup DeepSeek triggered a selloff in AI-linked stocks and major AI chipmaker Nvidia Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) in mid-January.
While companies worldwide are finding a way for AI training and inferencing without using Nvidia&#8217;s advanced chips, the South China Morning Post <a href="https://www.scmp.com/tech/tech-war/article/3302516/chip-war-chinese-start-aims-break-nvidias-grip-ai-new-model-framework">reported</a> on Sunday that a Tsinghua University-linked team introduced an AI framework that can work on Chinese-made chips. 
Qingcheng.AI and Tsinghua University unveiled Chitu, an LLM inference framework for Chinese chips, challenging Nvidia&#8217;s GPUs by supporting models like DeepSeek-R1.
Thus, as AI gains more prominence and global firms strive to improve efficiency, here is a list of AI-exposed exchange-traded funds listed in the U.S. that investors could consider in the long term.
<figure class="wp-block-table is-style-stripes"> 
<table>
<tbody>
<tr>
<td>ETF Name</td>
<td>YTD Performance</td>
<td>One Year Performance</td>
</tr>
<tr>
<td>iShares US Technology ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IYW#NYSE">IYW</a>)</td>
<td>-8.74%</td>
<td>9.36%</td>
</tr>
<tr>
<td>Fidelity MSCI Information Technology Index ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FTEC#NYSE">FTEC</a>)</td>
<td>-9.41%</td>
<td>9.04%</td>
</tr>
<tr>
<td>First Trust Dow Jones Internet Index Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FDN#NYSE">FDN</a>)</td>
<td>4.21%</td>
<td>13.93%</td>
</tr>
<tr>
<td>iShares Expanded Tech Sector ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IGM#NYSE">IGM</a>)</td>
<td>-7.70%</td>
<td>10.80%</td>
</tr>
<tr>
<td>iShares Global Tech ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IXN#NYSE">IXN</a>)</td>
<td>-7.21%</td>
<td>6.19%</td>
</tr>
</tbody>
</table>
</figure>
Price Action: The SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) and Invesco QQQ Trust ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>), which track the S&amp;P 500 index and Nasdaq 100 index, respectively, dropped in premarket on Monday. The SPY was down 0.30% to $561.12, and the QQQ also declined 0.17% to $478.85, according to <a href="https://pro.benzinga.com/dashboard">Benzinga Pro</a> data.
SPY closed 2.07% higher at $562.81 and QQQ rose 2.42% to $479.66 on Friday.
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<li><a href="https://www.benzinga.com/25/03/44353578/safe-haven-amidst-volatility-gold-tops-3000-as-market-corrects-but-it-tends-to-see-painful-drawdowns-after-period">Hasbro, MGM Resorts, and Sketchers Use this Pre-IO AI Marketing Firm — <a href="https://www.benzinga.com/money/rad-intel">and You Can Own a Piece of it From $0.55/ per Share</a></a></li>
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Photo courtesy: Shutterstock

NVDA

Mark Cuban Advises GenZ To 'Spend Every Waking Minute Learning About AI:' Here's A List Of AI Investment Opportunities For Long Term

Chipmaker Nvidia Corp., along with other artificial intelligence-linked stocks and exchange-traded funds, have plunged in 2025 despite the growing enthusiasm surrounding the sector. This expert who predicted the dot-com crash compares the AI-linked enthusiasm to instances that &#8220;sometimes leads to bubbles&#8221;.
What Happened: After the release of his latest memo, &#8216;On Bubble Watch,&#8217; in early January, Howard Marks, the co-founder and co-chairman of Oaktree Capital Management, spoke about how AI is poised to change the world in a <a href="https://www.oaktreecapital.com/insights/memo-podcast/behind-the-memo-on-bubble-watch">podcast</a> titled &#8216;Behind the Memo &#8211; On Bubble Watch&#8217; with Harry Whitelaw.
According to Marks, the novelty of AI places no limits on the potential and enthusiasm surrounding the sector. Having &#8220;no historical&#8221; base also aids to the unending enthusiasm for AI.
Highlighting these conditions, Marks said, &#8220;That's a great precursor for the kind of enthusiasm that sometimes leads to bubbles.&#8221;
&#8220;The thrill of the new thing and the fear of missing out is an incredibly powerful combination. I've seen it at work many times and it'll never stop, in my opinion,&#8221; he added.
These predictions came true as the AI-linked stocks and sectors have underperformed in 2025. Despite the emergence of <a href="https://www.benzinga.com/markets/equities/25/02/43995515/jensen-huang-says-deepseek-was-fantastic-next-gen-models-demand-100x-more-compute-as-nvidia-smashes-earnings-records">DeepSeek</a>, which according to many experts will only fuel the demand of AI, the weakness in the sector is evident after unbridled enthusiasm in 2024.
<figure class="wp-block-table is-style-stripes"> 
<table>
<tbody>
<tr>
<td>Stocks</td>
<td>YTD Performance</td>
<td>One Year Performance</td>
</tr>
<tr>
<td>Nvidia Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>)</td>
<td>-9.76%</td>
<td>46.42%</td>
</tr>
<tr>
<td>Apple Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>)</td>
<td>-1.01%</td>
<td>37.86%</td>
</tr>
<tr>
<td>Microsoft Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>)</td>
<td>-5.16%</td>
<td>-4.32%</td>
</tr>
<tr>
<td>Amazon.com Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>)</td>
<td>-3.75%</td>
<td>19.36%</td>
</tr>
<tr>
<td>Alphabet Inc. Class C (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOG#NASDAQ">GOOG</a>)</td>
<td>-9.71%</td>
<td>28.26%</td>
</tr>
<tr>
<td>Meta Platforms Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/META#NASDAQ">META</a>)</td>
<td>11.51%</td>
<td>34.13%</td>
</tr>
<tr>
<td>Tesla Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>)</td>
<td>-22.74%</td>
<td>55.76%</td>
</tr>
<tr>
<td>Palantir Technologies Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PLTR#NASDAQ">PLTR</a>)</td>
<td>12.92%</td>
<td>253.18%</td>
</tr>
<tr>
<td>Oracle Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ORCL#NYSE">ORCL</a>)</td>
<td>0.02%</td>
<td>45.59%</td>
</tr>
</tbody>
</table>
</figure>
Broadly, the AI-linked ETFs have also largely underperformed in 2025.
<figure class="wp-block-table is-style-stripes"> 
<table>
<tbody>
<tr>
<td>ETF Name</td>
<td>YTD Performance</td>
<td>One Year Performance</td>
</tr>
<tr>
<td>iShares US Technology ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IYW#NYSE">IYW</a>)</td>
<td>-3.06%</td>
<td>14.53%</td>
</tr>
<tr>
<td>Fidelity MSCI Information Technology Index ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FTEC#NYSE">FTEC</a>)</td>
<td>-3.80%</td>
<td>13.40%</td>
</tr>
<tr>
<td>First Trust Dow Jones Internet Index Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FDN#NYSE">FDN</a>)</td>
<td>1.09%</td>
<td>20.90%</td>
</tr>
<tr>
<td>iShares Expanded Tech Sector ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IGM#NYSE">IGM</a>)</td>
<td>-2.19%</td>
<td>16.18%</td>
</tr>
<tr>
<td>iShares Global Tech ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IXN#NYSE">IXN</a>)</td>
<td>-2.50%</td>
<td>9.97%</td>
</tr>
</tbody>
</table>
</figure>
See Also: <a href="https://www.benzinga.com/markets/equities/25/01/42995814/billionaire-investor-who-predicted-the-dot-com-crash-25-years-ago-warns-of-another-market-storm-brewing-in-the-us">Billionaire Investor Who Predicted The Dot-Com Crash 25 Years Ago Warns Of Another Market Storm Brewing In The US</a>
Why It Matters: Famed investor Marks, who foresaw the dot-com bubble, once again sounded an alarm on Jan. 7, with his latest memo, &#8216;<a href="https://www.benzinga.com/markets/equities/25/01/42995814/billionaire-investor-who-predicted-the-dot-com-crash-25-years-ago-warns-of-another-market-storm-brewing-in-the-us">On Bubble Watch</a>&#8216;. He points to several &#8220;cautionary signs&#8221; in the current market, including soaring valuations, AI hype, and heavy reliance on mega-cap tech stocks. 
Marks also highlights research from JP Morgan Asset Management showing that high valuations like today&#8217;s often precede lackluster returns over the following decade. He cautions that investors should not ignore these warning signs, especially the elevated market valuations. Essentially asking to proceed with caution.
Price Action: The SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) and Invesco QQQ Trust ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>), which track the S&amp;P 500 index and Nasdaq 100 index, respectively, rose on Friday. The SPY was up 1.56% to $594.18, and the QQQ also advanced 1.56% to $508.10, according to <a href="https://pro.benzinga.com/dashboard">Benzinga Pro</a> data.
Read Next:
<ul>
<li><a href="https://www.benzinga.com/25/02/43622036/warren-buffett-indicator-tops-205-amid-skyrocketing-sp-500-valuations-as-this-billionaire-dot-com-crash-predictor-sounds-alarm">Warren Buffett Indicator Tops 205% Amid Skyrocketing S&amp;P 500 Valuations As Billionaire Who Predicted Dot-Com Crash 25 Years Ago Warns Of Brewing Trouble</a></li>
</ul>
Photo courtesy: Oaktree Capital Management

AAPL

GOOG

GOOGL

ORCL

PLTR

TSLA

Billionaire Investor Howard Marks Warns Against AI's 'Powerful' Novelty And FOMO As Nvidia, Other AI-Linked Stocks Tumble In 2025: Says This Enthusiasm 'Sometimes Leads To Bubbles'

Billionaire Ray Dalio cautioned investors in a recent podcast interview with Tucker Carlson saying that the development of artificial intelligence could risk totalitarian social control or even anarchy in the coming years.
Highlighting the unpredictability in the direction of AI's growth, Dalio anticipated a radically different world over the next five years.
What Happened: Dalio recently appeared on a podcast with Carlson on the latter's YouTube channel discussing the trends in the U.S. economy, debt crisis, stock market, and AI.
Discussing the various possibilities of using AI at a "molecular level," from solving medical issues to problems like inflation within an economy, Dalio said that AI was a "two-edged sword". The future could be shaped depending on who has access to and control of such AI tools, he said.
When asked if there was a way to avoid totalitarian social control through AI, Dalio said, "I think there&#8217;s a question of whether you can have social and totalitarian controls or maybe you just have anarchy."
Dalio believes that humanity will undergo an AI technology-induced "time warp," which will radically change the world in the next five years. He also added that quantum computing will be another innovation to look at.
"So the world five years from now is going to be a radically different world. And I don&#8217;t know what that&#8217;s going to look like when you go into the world of quantum computing and what quantum is like in so many different ways. It raises questions of, you know, what is that like?" said Dalio.
See Also: <a href="https://www.benzinga.com/25/02/43932776/mark-cuban-slams-fd-up-healthcare-system-blames-insurance-designed-deductibles-for-patient-bankruptcy">Mark Cuban Calls Deductibles &#8216;The Biggest Problem&#8217; in Healthcare: &#8216;System…Needs To Be Redesigned&#8217;</a>
Why It Matters: Microsoft Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>) launched ‘Majorana 1,' last week which is one of its kind quantum computing chip operating in a topological phase of matter. While Satya Nadella termed it a "physics breakthrough," he added that the launch of this chip could shorten the timeline of a possible quantum computing breakthrough.
Similarly, with DeepSeek's emergence, the competition in the AI industry has also intensified. Here is a list of AI and quantum computing-linked exchange-traded funds that investors could consider over the long term.
<figure class="wp-block-table is-style-stripes"> 
<table>
<tbody>
<tr>
<td>ETF Name</td>
<td>YTD Performnace</td>
<td>One Year Performance</td>
</tr>
<tr>
<td>iShares US Technology ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IYW#NYSE">IYW</a>)</td>
<td>7.55%</td>
<td>0.90%</td>
</tr>
<tr>
<td>Fidelity MSCI Information Technology Index ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FTEC#NYSE">FTEC</a>)</td>
<td>-2.57%</td>
<td>17.89%</td>
</tr>
<tr>
<td>First Trust Dow Jones Internet Index Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FDN#NYSE">FDN</a>)</td>
<td>0.80%</td>
<td>22.78%</td>
</tr>
<tr>
<td>iShares Expanded Tech Sector ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IGM#NYSE">IGM</a>)</td>
<td>-1.14%</td>
<td>20.91%</td>
</tr>
<tr>
<td>iShares Global Tech ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IXN#NYSE">IXN</a>)</td>
<td>-0.66%</td>
<td>14.81%</td>
</tr>
<tr>
<td>Defiance Quantum ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QTUM#NASDAQ">QTUM</a>)</td>
<td>-1.93%</td>
<td>37.08%</td>
</tr>
</tbody>
</table>
</figure>
Price Action: The SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) and Invesco QQQ Trust ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>), which track the S&amp;P 500 index and Nasdaq 100 index, respectively, rose in premarket on Wednesday. SPY was up 0.45% to $596.94, and QQQ advanced 0.75% to $517.16, according to <a href="https://pro.benzinga.com/dashboard">Benzinga Pro</a> data.
Read Next:
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<li><a href="https://www.benzinga.com/25/02/43936887/amazon-exceeds-walmart-q4-revenue-which-was-77x-lower-in-2000-took-25-years-contrary-to-jeff-bezos-10-year-overnight-success-statement-in-2018">Jeff Bezos Once Said &#8216;Overnight Success&#8217; Takes 10 Years. It Took Amazon 25 Years To Surpass Walmart&#8217;s Revenue</a></li>
</ul>
Photo courtesy: Shutterstock

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Financing

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Billionaire Ray Dalio Says AI Risks 'Totalitarian Control Or Anarchy' As It Could Reshape World In Next 5 Years: Here Are AI-Linked ETFs For Investors To Consider

As artificial intelligence continues to reshape industries, Savart&#8217;s AI engine, APART, is identifying promising investment opportunities beyond the expensive and overvalued &#8220;AI poster boys&#8221; in both the listed and unlisted space.
What Happened: APART AI is currently favoring the automotive sector, companies providing the &#8220;shovels&#8221; for the AI gold rush, and capital goods industries as top picks for 2025, suggesting that the real value might lie in the supporting infrastructure rather than the most visible AI players.
&#8220;Our APART AI is currently heavy on automobiles, AI-shovel businesses, and capital goods industries,&#8221; said Sankarsh Chanda, founder and CEO of Savart which owns the AI-driven investment research engine, APART AI.
Highlighting a pattern of stock-picking by APART AI among the AI-linked stocks, Chanda added &#8220;We have noticed is that our system is focused on picking those selling shovels rather than the gold sellers in this AI gold rush. This is also likely because of the over valuation of the AI poster boys in both the listed and unlisted space.&#8221;
Unlike traditional asset management and even robo-advisors, APART&#8217;s data-driven approach eliminates human bias and emotional decision-making, focusing on long-term wealth creation, explained Chanda in a conversation with <a href="https://www.benzinga.com">Benzinga</a>.
See Also: <a href="https://www.benzinga.com/general/market-summary/25/02/43764573/strategys-preferred-shares-outpace-peers-by-19-offer-7x-higher-liquidity-over-first-two-weeks-analysis-highlights-very-high-yields">Strategy&#8217;s Preferred Shares Outpace Peers By 19%, Offer 7x Higher Liquidity Over First Two Weeks: Analysis Highlights &#8216;Very High Yields&#8217;</a>
Why It Matters: Talking about the unpredictability surrounding Donald Trump&#8216;s new policies on trade and tax, and its impact on the stock market Chanda said that &#8220;volatility presents a lot of opportunities especially for long term investors and more so for foreign capital looking to enter the American market.&#8221;
&#8220;While the road may be rocky over the next few years, the American story seems stronger than ever,&#8221; he adds.
Addressing the future of AI amid the emergence of DeepSeek's modestly priced models, Chanda said, &#8220;AI is going to be more accessible, affordable and omni-present over the coming years.&#8221;
Price Action: Some exchange-traded funds consisting of AI-linked stocks have given a handsome year-to-date and annual return. Here is a list:
<figure class="wp-block-table is-style-stripes"> 
<table>
<tbody>
<tr>
<td>ETF Name</td>
<td>YTD Performance</td>
<td>One Year Performance</td>
</tr>
<tr>
<td>iShares US Technology ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IYW#NYSE">IYW</a>)</td>
<td>3.96%</td>
<td>27.95%</td>
</tr>
<tr>
<td>Fidelity MSCI Information Technology Index ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FTEC#NYSE">FTEC</a>)</td>
<td>2.86%</td>
<td>27.30%</td>
</tr>
<tr>
<td>First Trust Dow Jones Internet Index Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FDN#NYSE">FDN</a>)</td>
<td>9.56%</td>
<td>35.81%</td>
</tr>
<tr>
<td>iShares Expanded Tech Sector ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IGM#NYSE">IGM</a>)</td>
<td>5.72%</td>
<td>33.32%</td>
</tr>
<tr>
<td>iShares Global Tech ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IXN#NYSE">IXN</a>)</td>
<td>3.83%</td>
<td>23.30%</td>
</tr>
</tbody>
</table>
</figure>
On Friday, the SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) and Invesco QQQ Trust ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>) which track the S&amp;P 500 and Nasdaq 100 indices, closed mixed. SPY fell 0.0049% to a value of $609.7, and QQQ was up by 0.42% to end at a value of $538.15, according to <a href="https://pro.benzinga.com/dashboard">Benzinga Pro</a> data.
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Earnings Scheduled For February 6, 2025

In a blog post on Tuesday, the International Monetary Fund (IMF) highlighted the potential of artificial intelligence to enhance market efficiency while also posing risks of increased volatility and cyber threats.
What Happened: The IMF&#8217;s Global Financial Stability Report delves into the role of AI in financial institutions and its potential impact on markets. AI&#8217;s rapid data processing capabilities could revolutionize markets, but its adoption remains limited among investors. The report anticipates growth in AI-driven trading, especially in liquid asset classes like equities and bonds, which could lead to market instability. This was evident during the March 2020 market turmoil involving AI-driven ETFs.
Patent data reveals a surge in AI-related innovations for algorithmic trading, indicating a forthcoming wave of technological advancements. The IMF warns that AI might shift investments to less regulated nonbank financial intermediaries, complicating market oversight. 
To tackle these challenges, the IMF suggests enhancing regulation and supervision of AI-related activities, implementing new volatility response mechanisms, and strengthening oversight of nonbank intermediaries.
See Also: <a href="https://www.benzinga.com/markets/cryptocurrency/24/10/41308908/man-who-accidentally-threw-hard-drive-containing-8-000-bitcoins-worth-half-a-billion-dolla?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Man Who Accidentally Threw Hard Drive Containing 8,000 Bitcoins Worth Half A Billion Dollars In Landfill Sues Local City Council For Not Excavating The Site</a>
Why It Matters: The potential impact of AI on financial markets has been a topic of concern for some time. In June, IMF Deputy Chief Gita Gopinath warned about <a href="https://www.benzinga.com/news/24/06/39224309/imfs-gita-gopinath-warns-ai-could-disrupt-financial-markets-supply-chains-and-more-policy-actions-no">AI&#8217;s disruptive potential</a> on financial markets and other sectors, emphasizing the need for policy actions to mitigate risks while harnessing AI&#8217;s benefits. Her comments highlighted the importance of monitoring AI&#8217;s adoption and application across various sectors.
Additionally, the 2024 U.S. presidential election has been identified as a <a href="https://www.benzinga.com/markets/24/10/41125551/why-the-us-presidential-election-will-be-a-watershed-moment-for-artificial-intelligence-in-trading-f">pivotal moment for AI </a>in trading. The election&#8217;s unpredictability, coupled with AI&#8217;s growing role in forecasting for broker-dealers, suggests that AI could face significant challenges in the coming months. This period may serve as a watershed moment for trading intelligence, as election uncertainty could lead to increased market volatility.
Price Action: At the time of writing during Tuesday&#8217;s after-hours market, AI ETFs were showing mixed activity, as per <a href="https://pro.benzinga.com">Benzinga Pro</a>. First Trust Nasdaq Artificial Intelligence and Robotics ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ROBT#NASDAQ">ROBT</a>) was up y 2.47%, Global X Artificial Intelligence &amp; Technology ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AIQ#NASDAQ">AIQ</a>) was up by 1.28% and iShares Global Tech ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IXN#NYSE">IXN</a>) was up by 2.60%. However, iShares Expanded Tech Sector ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IGM#NYSE">IGM</a>) was down by 1.42%.
Read Next: 
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<li><a href="https://www.benzinga.com/markets/cryptocurrency/24/10/41306653/anthony-scaramucci-praises-trump-for-shifting-the-crypto-debate-hes-now-forced-the-democra?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Anthony Scaramucci Praises Trump For Shifting The Crypto Debate: &#8216;He&#8217;s Now Forced The Democrats To Come Back Into The Middle&#8217;</a></li>
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Disclaimer: This content was partially produced with the help of <a href="https://www.benzinga.com/author/benzinga-neuro" target="_blank" rel="noreferrer noopener">Benzinga Neuro</a> and was reviewed and published by Benzinga editors.
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IMF Warns AI In Stock Trading Can Boost Efficiency, But Warns Of Increased Market Volatility

Wall Street wrapped up a blockbuster first half of the year. The S&amp;P 500 index gained a whopping 14.5% while the Dow Jones Industrial Average rose 3.8%. The Nasdaq Composite Index emerged as an outperformer, climbing 18.1%. The ongoing artificial intelligence&nbsp;craze, rate-cut bets and strong corporate profit growth were the biggest catalysts in driving the stocks higher and will continue to do so for the rest of the year. Wall Street analysts have become more bullish on stocks, citing these as a strong combination of factors. 
In the current scenario, investors should bet on ETFs that were winners in the first half and have a solid Zacks ETF Rank #1 (Strong Buy) or 2 (Buy). These are VanEck Vectors Semiconductor ETF (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/smh#NASDAQ">SMH</a>), iShares Expanded Tech Sector ETF (ARCA:IGM), SPDR Portfolio S&amp;P 500 Growth ETF (ARCA:SPYG), iShares Russell Top 200 Growth ETF (ARCA:IWY) and Invesco AI and Next Gen Software ETF (ARCA:IGPT). 
The &quot;Magnificent Seven&quot; was the biggest engine of growth for the S&amp;P 500 and the Nasdaq. About 60% of the gains were driven by the &quot;mega-cap&quot; tech companies &mdash; NVIDIA, Microsoft, Amazon, Meta Platforms&nbsp;and Apple. NVIDIA alone accounted for 31% of the market&#39;s first-half advance. With the latest surge, NVIDIA, Apple and Microsoft are in the race to become the world&#39;s most valuable company and hit a market capitalization of $4 trillion on surging enthusiasm over AI capabilities. This technology-driven momentum is expected to continue at least through the summer. 
In the latest FOMC meeting, U.S. policymakers penciled in just one rate cut for this year and projected four cuts for 2025. The Fed altered language in its statement, noting &quot;modest further progress toward the committee&#39;s 2% inflation objective.&quot; Previously, the statement pointed to a &quot;lack&quot; of further progress. Low rates reduce the cost of borrowing, which is often needed to finance the expansion of companies, thereby driving economic growth. Lower rates typically reduce the attractiveness of fixed-income investments like bonds, leading investors to seek higher returns in the equity markets. 
Second-quarter earnings are expected to be robust. Per the Zacks Earnings Trends report, second-quarter earnings for the S&amp;P 500 index will be up 8.3% from the same period last year on 4.6% higher revenues. This is the highest quarterly earnings growth pace since 9.9% growth in the first quarter of 2022 and would follow 6.7% earnings growth on 3.2% revenue gains in the first quarter of 2024. 
Further, a strong first half for the S&amp;P 500 Index historically bodes well for the rest of the year. Since the early 1950s, when the index climbed more than 10% through June, it has risen by a median of roughly 10% in the second half, per data compiled by Bloomberg. However, elevated valuations, the U.S. presidential election in November and uncertainty about the path of interest-rate cuts will weigh on stocks in the second half of this year. 
We have profiled the abovementioned ETFs in detail below: 
VanEck Vectors Semiconductor ETF&nbsp;&ndash; Up 49.3% 
VanEck Vectors Semiconductor ETF offers exposure to companies involved in semiconductor production and equipment. It follows the MVIS US Listed Semiconductor 25 Index and holds 26 stocks in its basket. VanEck Vectors Semiconductor ETF has managed assets worth $22.3 billion and charges 35 bps in annual fees and expenses. SMH trades in an average daily volume of 7 million shares and has a Zacks ETF Rank #1. 
iShares Expanded Tech Sector ETF &ndash; Up 27.2% 
iShares Expanded Tech Sector ETF offers broad exposure to the technology sector and technology-related companies in the communication services and consumer discretionary sectors. It tracks the S&amp;P North American Expanded Technology Sector Index, holding 282 stocks in its basket. iShares Expanded Tech Sector ETF has AUM of $5 billion and charges 41 bps in annual fees. It trades in an average daily volume of 397,000 shares and has a Zacks ETF Rank #1. 
SPDR Portfolio S&amp;P 500 Growth ETF &ndash; Up 24.4%&nbsp; 
SPDR Portfolio S&amp;P 500 Growth ETF follows the S&amp;P 500 Growth Index, holding 231 stocks in its basket with a heavy concentration on the top three firms. It is heavy on the information technology sector with a 51.2% allocation, while communication services and consumer discretionary round off the next two spots. SPDR Portfolio S&amp;P 500 Growth ETF has amassed $28.9 billion in its asset base and charges investors 4 bps in annual fees. Volume is good, exchanging 2.3 million shares a day on average. SPYG has a Zacks ETF Rank #2. 
iShares Russell Top 200 Growth ETF &ndash; Up 24% 
iShares Russell Top 200 Growth ETF offers exposure to large U.S. companies that are expected to grow at an above-average rate relative to the market. It tracks the Russell Top 200 Growth Index, holding 106 stocks in its basket. iShares Russell Top 200 Growth ETF has key holdings in information technology, communications and consumer discretionary with double-digit exposure each. iShares Russell Top 200 Growth ETF has amassed $12 billion in its asset base and trades in an average daily volume of 344,000 shares. It has an expense ratio of 0.20% and has a Zacks ETF Rank #2. 
Invesco AI and Next Gen Software ETF &ndash; Up 22.8% 
Invesco AI and Next Gen Software ETF comprises companies with significant exposure to technologies or products that contribute to future software development through direct revenues. It holds 100 stocks in its basket and charges 60 bps in fees per year from investors. Invesco AI and Next Gen Software ETF has amassed $382 million in its asset base and trades in a volume of 73,000 shares a day on average. It has a Zacks ETF Rank #1.
<a href="https://www.zacks.com/stock/news/2296291/top-ranked-etfs-that-outperformed-the-market-in-1h?cid=CS-BENZ-FT-etf_news_and_commentary-2296291">To read this article on Zacks.com click here.</a>

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